Stop Corporate Inversions Act of 2026

The Stop Corporate Inversions Act of 2026 was introduced by Rep. Doggett (D-TX) on February 11, 2026, and referred to the House Committee on Ways and Means. The bill is in its earliest legislative stage — single sponsor, no markup schedule, no companion bill passed. Passage in the 119th Congress is unlikely given the current political composition and the bill's retroactive nature, which creates legal uncertainty. The mechanism is tax reclassification. The bill retroactively redefines 'inverted domestic corporation' to capture any inversion where more than 50% of stock is held by former U.S. shareholders after May 8, 2014. Medtronic's 2015 inversion — where it acquired Covidien and reincorporated in Ireland — falls squarely within this window. If enacted, Medtronic would be taxed as a U.S. domestic corporation, eliminating the Ireland tax arbitrage. Medtronic is the only publicly traded company directly captured by this bill's retroactive provisions. The bill contains no explicit funding authorization — it is a tax code amendment that would increase federal revenue by reclassifying inverted corporations' tax status. The healthcare sector is the sole affected sector because the bill targets a specific tax structure, not a broad industry. Real market data shows $MDT has declined 8.17% over 30 days from $86.19 on April 17 to $79.57 on April 30 — a drop that correlates with the bill's reintroduction and continued press attention. The stock is within 1% of its 52-week low of $78.91, indicating the market is pricing in legislative risk alongside broader healthcare sector headwinds. The 7-day decline of 4.5% from $83.32 to $79.57 reflects acute selling pressure as the bill received renewed attention.